Barry Stuppler

Whilst many may argue that gold is an inflation hedge and therefore inflation is bullish for gold, in reality the dynamics at play here are not that simple.

In our view, gold is a currency. Therefore fluctuations in its price are largely based on its perceived value relative to other currencies. We would not suggest that its role as an inflation hedge is a primary reason for being long gold, since there are far more direct and efficient ways to hedge against inflation risk in this modern financial environment. We do however see currency devaluation as a primary reason to....

THE ISSUE: The price relationship between gold and platinum reflects continued economic worries, but the historically wide spread of the two metals could signal trading opportunities.

Platinum is about 15 times more rare than gold and usually trades at a premium to the yellow metal. But the greater the worry about the economy, the higher gold trades in relation to platinum.

"The relative performance of these metals is telling us that ....

When it comes to precious metals, palladium may give investors more bang for their buck than its flashier cousins.

The often-forgotten white metal is expected to outstrip gains of both gold and silver again this year, thanks to concerns over supply disruptions and surging car sales in fast-growing Asian countries.

Palladium is mainly used to make catalytic converters to reduce toxic emissions from gasoline-fuelled cars sold in Asia and North America. Its sister metal, platinum, is similarly used in diesel-powered autos sold mostly in Europe, but that market has been weaker, suppressing platinum’s buoyancy.

“Palladium is my top pick among precious metals this year,” said Patricia Mohr, a commodity markets specialist at Bank of Nova Scotia ....